By purchasing $10.5 billion in wireline assets from Verizon, Frontier Communications scales its fiber-to-the-home FiOS footprint from four to seven states. Out of the 2.2 million broadband subscribers it gains, 1.6 million are FiOS broadband customers.
Verizon finally made it public that is selling its wireline assets in three states to Frontier for $10.5 billion, but besides getting more cash to fund its wireless operations, its decision was also influenced by the FCC's move to reclassify wireline broadband providers under Title II of the 1996 Telecom Act.
Frontier Communications officially emerged as the suitor for the $10.5 billion in wireline assets that Verizon wants to offload, signifying its ongoing effort to scale its reach in new markets and deepen its presence in others it already serves. But it remains to be seen how Frontier integrates these new assets.
Verizon has made it official today that it is selling off wireline assets in three states to Frontier Communications for $10.5 billion. In a separate deal, Verizon is also selling over 11,300 of its company-owned wireless towers to American Tower Corporation for $5 billion.
Verizon Wireless agreed to lease the rights to 11,324 of its communications towers and sell 165 additional towers to American Tower for $5.056 billion in cash. The deal comes as no surprise as Verizon has said for months that it would be open to selling its tower assets. The sale of Verizon's towers will help fund the company's recent $10.4 billion purchase of AWS-3 spectrum licenses during the FCC's auction.
Companies and associations are reacting to FCC Chairman Tom Wheeler's plan to codify net neutrality rules that would reclassify broadband as a telecommunications service under Title II of the Telecommunications Act.
Verizon Enterprise Solutions has expanded its agreement with group-purchasing organization MiCTA, enhancing the reach of its service portfolio to state and local government agencies, K-12 schools, colleges and universities, libraries and nonprofits.
My view is that the AWS-3 auction results will lead to some pretty important changes in the makeup of the wireless industry.
Verizon is close to reaching a deal to sell off wireline assets that are worth $10 billion to Frontier Communications, reports Reuters, citing a person familiar with the talks.
The FCC says that Chairman Tom Wheeler's draft order to create net neutrality rules that would reclassify broadband Internet access under Title II has the legal footing it needs to withstand any legal challenges that telcos like AT&T and Verizon plan to launch once the rules come out.